Sydney rental crisis: Over 100 people crowd to view two bedroom Surry Hills apartment

A renter has opened up about the extreme lengths he is willing to take to secure somewhere to live, thanks to the tight market.

More than 100 people attended a lunchtime viewing of an inner-city Sydney apartment, with renters prepared to offer $100 over the asking price before they even entered, in the hopes of securing an apartment.

Over 70 groups waited in a hefty queue spanning more than five metres for the $720 a week, two-bedroom, two bathroom home in Sydney’s inner-city suburb of Surry Hills.

Sydneysiders waited in droves to inspect the Surry Hills apartment. Picture: NCA NewsWire/ Nicholas Eagar

By 2.20pm, five minutes after the inspection ended, more than 20 people were still waiting in line.

Oisin Scully, 27 said he and his cousin had started offering between $50 to $100 extra a week on each application. They’ve applied for 20 properties in the last two months, with no success.

“For this property, I’ll probably offer an extra $100,” he said.

“I’ve been told by my mates that’s what you have to do. You have to offer more to stand out.”

Oisin Scully said him and his cousin have applied for 20 properties in the last two months. Picture: NewsWire/ Jessica Wang

Sydney student Matilda Hale, 23 says she’s been to six viewings in the past few weeks.

In an earlier inspection at the neighbouring suburb of Darlinghurst, she said the home was “so packed you couldn’t move”.

The Surry Hills open home was worse.

“This is the most densely packed that I’ve seen,” she said.

Price hikes on rentals are straining budgets too.

“I last moved during Covid, so the real estate market had dropped significantly,” she said.

“My housemate has just come over from London and she’s staying in an AirBnb that’s charging like $800 a week. She’s desperate to move.”

Student Matilda Hale said the Surry Hills viewing was the worst she’s seen. Picture: NCA NewsWire/ Nicholas Eagar

Sydney’s crippling rental market is at its lowest availability level since Covid. According to PropTrack data published this month, Sydney’s rental vacancy rate is now at 1.7 per cent, while a year ago it was at 2.74 per cent.

Australia’s national vacancy rate sits at 1.47 per cent.

Recent analysis from housing advocacy group Everybody’s Home found asking prices had increased between 27.8 per cent and 48.6 per cent in the past 12 months.

Belle Property leasing consultant Kevin Ly, who held Wednesday’s inspection, said 70 groups went through the property. His busiest home saw 114 groups go through the home.

“This is the busiest one I’ve seen in recent weeks,” he said.

“I typically get 10 to 15 groups per property with the two bedroom homes but it just depends on what’s on the market.”

The apartment was in Sydney’s inner-city suburb of Surry Hills. Picture: Supplied

It was advertised for $720 a week. Picture: Supplied

About 70 groups inspected the home on Wednesday afternoon. Picture: Supplied

With the state election days away, both major parties have supported a ban on rent bidding. While this prevents real estate agents asking for renters to pay more, desperate tenants say offering more rent is one of the only ways to secure a property.

Although rental bidding might be banned, Mr Scully says its been ineffective against controlling prices.

“It’s stupid. It hasn’t worked yet. It’s still going on,” he said.

“This is the way the market is at the moment.”

Dozens of Sydneysiders are pictured lined up outside an open-for-inspection rental apartment in Surry Hills. The rental crisis remains one of the key issues of the 2023 NSW state election. Picture: NCA NewsWire / Nicholas Eagar

Ms Hale agrees.

“It doesn’t mean that’ll stop people from asking. People can still offer more and they won’t turn it down.

“That’s unfair for people who can’t afford more.”

She says as a student, she’s “automatically disadvantaged” against full time workers.

“I still want to live in the city and have equal opportunity to be getting these apartments. (There should be) more equality with younger people,” she said.

Mr Ly said properties are costed according to the rental market, which also considers the amount of stock available.

“Whether someone is accepted is dependent on several factors, like their references and making sure they can take care of the place,” he said.

“If people see value in going above the asking price, that’s up to them. I don’t encourage people to offer more.”